What am I supposed to do?

[iNTeNSeBLue98]

I started this really LONG, in-depth post about this problem but realized it was TMI. Here's the story, SHORT!

Today I received a notice from a collection agency to make payment in 48 hours. Where am I to find $1000 in two days when I am in arrears with every other creditor I have? What is a tactful way of speaking this this agency, and my other creditors, about our lousy situation. I haven't been able to send a check to this collection agency in quite a few months. The balance is now about $1000. I really want to make a payment, to everyone who I owe, but I physically do not have the ability.

Our financial situation has changed a few times until now, sometimes better, often times worse, due to DH switching jobs, losing jobs, changing health insurance, etc. More money is now going elsewhere and we have a minimum of $400 less per month available to pay our bills. DH is looking for a better paying job and is also waiting for his position with McDonald's to change to Management, which will put our monthly income back to what it was before he was fired last November.

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Here's the back-story on the loan for which the collection agency is trying to settle.

The original loan dates back to 1989 and was used to purchase a used car. We tried to make payments and even had the loan refinanced once to reduce the payment.

The piece of junk car required three repairs to the transmission in two years time ($700 a pop that we fixed twice), plus our insurance was $3000 a year (Twice what it could have been if we weren't young and at high risk). We were a struggling young couple and this car only dug us deeper into a hole with no opening.

We had long defaulted on the loan, but the bank never came to collect the car (I guess they knew it was worthless). We abandoned the car during a move from one rental property to another in 1992, and we never found an opportunity to move the car because we would have needed a tow and had no spare $$. The owners of the rental had the car removed and taken to a junk yard.

Fast forward to 1998. We are in desparate need of a reliable car. Finances are better, but not without problems. Our regualr bills, like utilites, are being paid on time for the most part and I'm starting to see a small fleck of light at the top of this big hole. We decide on a new car - for which we are penalized with high interest and pay dearly in our monthly payment. The collection agency now finds me and requests payment on this old loan. I make a promise to pay them $100 month to settle the debt. For a number of months I commited to making payments and all is well for a while.

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Further financial burden has dropped us further down in the hole that were were beginning to climb out of by mid-2003. Monthly payments on this, and other debts become fewer and I'm late with everything right now. It seems to be the story of our lives, UGH. I wonder if I'll ever be out of debt!

 

[Karel]

I wish I could offer advice but I can only send you best wishes. Maybe you can find one of the agencies that give free financial advice? What will happen if they don't get their money?

 

[bentley483]

Pay in 48 hours, or what? They are gonna break your kneecaps?

Is the vehicle you have used as collateral on the loan? Sometimes collection agencies will threaten and make statements aimed at getting you to send them something. Make a small token payment to them to show your good faith. Even if it is just $50.00, try again to make arrangements for a payment plan and do your best to stick with it. They don't want to have to take you to court. As long as they have some thought that you are going to send them any money they should continue to work with you because some payment is better than no payment. Worst case scenario is they take back the car which is probably worth less than what you owe on the loan.

The worst that can happen is that they will take you to court to have a judgement issued against you for the amount you already owe plus court costs. You said yourself that you are behind on your bills, they can't hurt your credit any more than it already is.

 

[kdibattista]

Check out www.creditboards.com - it has wonderful information!!!!

 

[Chrissi Pooh]

Not much help here but I have been somewhat in your position.

I say talk to the creditors and explain your position but also listen to there's, if you get nasty and act like only you matter here they will do the same and nothing will get accomplished.

Try to keep you cool and like another poster said even if it's only $50, heck if it's only $20 that's at least a start and most places won't come after you if you are attempting to repay any debt.

Good luck!!!

 

[iNTeNSeBLue98]

Thanks all. I really needed to vent about my situation and I knew I could find a little suppot here.

I've cycled through this place before, more than once and I'm so sick of it. I was just getting a handle on things when DH lost his job. The new job didn't come fast enough and he settled for a much lower rate. The advancement is coming, not sure how soon. His manager has spoken to him twice about it in the past two weeks and he earned a 50-cent raise.

The agency did ask for me to send any amount during our last conversation. I guess I can come up with something to hold them at bay. I'm so tired of choosing which bill to pay, but I keep thinking positive thoughts.

 

[Dan Murphy]

Really tough to read that, Kris, I can hear the ache. I just wish I could jump over to PA and help you guys out. Any possibilities with second jobs for either or both you and hubby? It's tough getting out of that cycle, but know well folks from here on the DIS have been there and are now fine. You will too. Were you okay till hubby was let go in Nov??

 

[iNTeNSeBLue98]

Thank you Dan - you are the best.

We were okay, not in the best of shape before the loss, but managing better than now. I had money in savings for WDW ($800) and the promise of our income tax refund ($1000), but that all went to the bills this winter. I might have been a month behind with some, but I took turns doubling up on payments to keep them from going to far gone. It's not helping that EVERYONE is charging late fees. I've tried to request due date changes, but if the account isn't current they don't want to talk about it. It's a Catch-22.

DH has considered a part-time job but is not actively looking for one. He'd prefer one full-time position that pays more. Actually he had a great one until he hurt his hand on the job in January. It was at a large battery mfr. through a temp service and the company won't rehire within 6 months. He was really upset at that loss, it had potential to earn twice what he's making now.

Dependent on whether a better full-time opportunity arises, he may keep his job at McDonalds. He applied for a few jobs in the past two weeks, but no one has called for an interview. It makes we wonder what his last employer is saying about him. I think he is feeling worthless and doesn't see a reason to go forward with his search. He does have income and the advancement to management is coming shortly. (there is a new location opening that will take two managers away from his location) I did tell him he should go about writing up a resume and emailing/mailing to prospective employers rather than going one by one to apply in person.

I've thought about a part-time job for myself, but I have one - a non-paying one, being Mom to DD. I think I'll check out the PT listings just to see what's being offered. In the meanwhile I keep my chin up (most of the time) and pretend like nothing is wrong. {sigh}.

 

[arminnie]

I think you should go to National Foundation for Credit Counseling Website and find a counselor to help you. This is a reputable agency that has approved affiliates across the country. There are MANY, MANY credit counseling companies out there and some of them are very disreputable. Please make sure that you work with a reputable agency. Some of the bad ones charge you money up front and then don't forward it to the creditors.

I would never work with a collection agency. They are leeches who are only in it to get a % of what you owe. If you send them any money they will hound you even more.

I had a collection agency bugging me about a doctor's bill that I refused to pay. The doctor cut an artery in my neck and I would have bled to death if a nurse had not stood there holding my neck for almost 4 hours while he ignored his pages. Guess what - nothing happened. They really can't do anything. I so wanted them to sue me so I could countersue. My insurance paid most of it anyway. I get a million credit card offers and have great credit.

I am NOT advocating that people not pay their bills. I know you would do the right thing if you were able to. That's what the National Foundation for Credit Counseling is for - people that are in trouble but want to do the right thing.

I spent much of my career in the credit business with a large credit card company. I also worked for a credit reporting bureau for several years. I am know quite a bit about the whole credit scene.

I wish you the best. You can come out of this with hard work.

 

[iNTeNSeBLue98]

arminnie - You have the type of answer that I really need and next to Dan, are the bright spot of my day.
Thanks for the link. I will check it out later this evening or definitely this weekend.

Since I don't have CREDIT CARD debt, I understand I am not eligible for some, if not all, of the counseling services anyway, right?

 

[Dan Murphy]

I do recall when your hubby hurt his hand.

As for jobs, he may not want another PT job, preferring FT, for sure, but maybe temporarily, till you get above water a bit, give yourselves some breathing room. And likewise for you. SAHM is great, but sometimes, for a short time, maybe something PT for you too. maybe give a temp agencey a call, explain your priorities as with DD and see what they might have. A little is better than nothing when it is so tight.

Kris, my prayers and good wishes are with you guys. 's

 

[arminnie]

Originally posted by iNTeNSeBLue98

Since I don't have CREDIT CARD debt, I understand I am not eligible for some, if not all, of the counseling services anyway, right?

I actually don't know the answer to that. Good for you that you don't have credit card debt! That's a big plus. They should be able to refer you to someone who is reputable that does handle cases like yours.

From what I know about the counseling services - they usually contact the creditors and work out a payment plan that keeps you from being burdened with late fees and may even get some interest rates reduced.

 

[Ella2]

Sounds like Dan has some good advice. I would definitely look for at LEAST part-time jobs for both of you until your financial situation is a little more stable. Far better for your child that she has a home to live in and food on the table than a mom that is home all the time...sometimes it just boils down to what you have to do. And good for you for not having credit card debt, at least.

Good luck!

 

[iNTeNSeBLue98]

WAIT! That was misleading. I thought you would all know that I do have a job, I'm not a SAHM.duh, me. I'm employed full-time outside the home, been with the same company for 12 years as of last week. I work 8 hour days (no OT) M-F 8-5ish.
Also misleading, is that while we have no credit card debt per se, I do carry balances on a few charge cards for department stores that I acquired after buying the car in 1998 in order re-establish my then zero credit history (this is where I ask myself why?). So far all are only late (60s days pushing 90) and none in collection. Not all are at their limit, of which the highest is only $500 and then there's the former FCND Spiegel Charge that is the next nemesis on my list.


Again, I will reading the website that arminnie linked to over the weekend and will send something to quiet the collection agency. I think I can manage a small amount, as well as somthing to satisfy the cable and electric companies.

 

[dmfuru]

I'll probably get flamed for this, but I am not one to spend an X amount of money on vacation if we are not 100% paid on all our bills and have some reserves left for unexpected bills. So I cannot see how you were to go to WDW in 1999 when the collection agency was asking that you repay this loan the year before. Could it have been possible that you could have postponed your vacation and use the money to pay off the loan?

Flame away!!!!

 

[picantel]

The statute of limitations on a reposession is 4 years. You are well past the SOL and owe NOTHING. This garbage collection agency bought your debt for about $1 and are scamming you into paying. You may email me at picanteL4343@hotmail.com for personal help. I do this on a volunteer basis. I am picantel on creditnet, picantel on creditboards, and scott on the cardreport forum. I put one collection agency out of business and helped the FTC nail another scummy one named Camco aka capital acquisitions. I am also working on JBC & Associates who are buncha thives and criminals and I am helping out a major newspaper who is doing a story on asset acceptance the biggest buncha tools in the united states. What scam collection agency is this? My guesses are camco, whitewing financial, calvary, rma, or northland. All of them love to do time barred debts. Also, what state are you in. did they threaten to place this on your credit report? Is it still on your credit report(illegally of course). did they threaten to take legal action against you? These things help. In some states a payment may restart the SOL but if it was done during duress you can claim fraud and blackmail and other violations of the fdcpa or fcra.

 

[iNTeNSeBLue98]

dmfuru,
I see how only knowing what you've read here would make you think that we shouldn't have gone to WDW. Maybe we shouldn't have, but it was a different time than now, different circumstances. We had higher income then and the debt was lower and up to date. The trip was paid in advance after I saved for nearly two years. I couldn't tell you if this collection agency had contacted me at that time of our trip. I only remember that it was after we purchased the new car that they contacted me. If the car would have been repo'd as it should been when we defaulted on the loan, my argument when they did start sending me letters, I wouldn't be in the state I am with this creditor.

picantel,
Interesting post.

 

[parmstrong]

It sounds like you have a lot of financial problems and either you shouldn't take the trip you have labeled "2004" or it's already too late and took it when you shouldn't have. I'm sure you'll find a lot of support on the DIS...people here will support ANYTHING. The smartest ones hit the back button and don't say a word...some, like me, can't help but express an opinion.

 

[iNTeNSeBLue98]

2004's trip is already out of the question. I was never going to go if bills were not being paid. DH losing his job pretty much nixed a trip anywhere.

 

[picantel]

Buying a new car would do it. Anyone with ancient debts who are buying a house or car should opt out with all the credit bureaus i.e. keep them from selling your information. The scum and slime comes out of the woodwork.